Trade War Impact Extends Beyond Commodity Beans

Published October 25, 2018

The impact of the trade war between the U.S. and China extends far beyond commodity soybeans. Surplus soybean supplies are putting a strain on storage. SB & B Foods, which markets non-GMO and food-grade soybeans, will also be pinched by the tight storage situation. “We’re trying to work on a farmer-by-farmer basis as we get closer to the end of harvest and realize they don’t have enough storage,” said Bob Sinner, president, SB & B Foods. Sinner, who is based in Casselton, North Dakota, says the demand for non-GMO soybeans remains strong. Premium soybean production contracts are available. “They’re all at or above CBOT so if you look at a basis of $1.50, just that in itself is a $1.50 premium. In some cases, our natto beans are $2 or $3 over CBOT.” Premiums are based on the variety grown.